Traders seek government intervention for coronavirus-hit businesses

By

Maverick Martins

Published
Mar 16, 2020

India’s traders’ body Confederation of All India Traders (CAIT) has sought the intervention of the government to bail out the industry due to losses suffered in business due to coronavirus.
 

CAIT has written to the Finance Minister, Nirmala Sitharaman, and Commerce Minister, Piyush Goyal, asking them to direct regulator Insurance Regulatory and Development Authority (IRDAI) for insurance from firms.
 
The traders want IRDAI to mandate insurance firms to introduce coverage for disruptions to businesses on account of the coronavirus outbreak.

“Insurance companies may be mandated to introduce 'disruptions due to coronavirus' as an additional cover to fire and materials damage policies, and the existing policyholders may be offered an option to add the additional cover,” CAIT said in its letter to the finance minister.
 
CAIT general secretary Praveen Khandelwal added: “The need for insurers to come up with need-based policies like cover against mosquito-borne diseases and vector-borne diseases, which can cover hospitalisation expenses due to coronavirus or fixed benefits upon its diagnosis.”
 
According to a survey of the National Sample Survey Office (NSSO), there are currently about 7 crore small businesses in the country that employ about 45 crore people.

The shutdown in the country due to the outbreak of coronavirus virus is expected to have severe economic implications on these businesses.